Vir Biotechnology Reports Decrease in Revenues and Net Loss in Latest Quarter, Initiates Restructuring Plan

Vir Biotechnology, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a decrease in total revenues, which amounted to $2.38 million for the three months ended September 30, 2024, down from $2.64 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues were $61.83 million, a decline from $69.39 million year-over-year. This decrease was attributed to lower collaboration revenue from profit-sharing arrangements, particularly related to the sales of sotrovimab.

Operating expenses for the third quarter increased to $233.68 million from $189.37 million in the prior year, primarily due to heightened research and development costs, which rose to $195.18 million from $145.03 million. The overall operating expenses for the nine-month period decreased to $531.85 million from $614.68 million in 2023, reflecting cost-saving measures implemented in previous restructuring efforts.

The company reported a net loss of $213.72 million for the third quarter of 2024, compared to a net loss of $163.41 million in the same quarter of 2023. For the nine months ended September 30, 2024, the net loss was $417.37 million, an improvement from $499.14 million in the prior year. The net loss per share for the third quarter was $(1.56), compared to $(1.22) in 2023, while for the nine months, it was $(3.07), down from $(3.73).

Vir Biotechnology's total assets decreased to $1.50 billion as of September 30, 2024, from $1.92 billion at the end of 2023. Current assets also fell significantly, driven by a reduction in cash and cash equivalents, which decreased to $168.35 million from $241.58 million. However, long-term investments increased to $271.50 million from $105.28 million.

Strategically, the company initiated a restructuring plan in August 2024, resulting in a workforce reduction of approximately 25%, equating to about 140 employees. This restructuring is expected to incur expenses of $11 million to $13 million, primarily for severance. Additionally, Vir Biotechnology closed a license agreement with Sanofi for the PRO-XTEN™ technology, which included an upfront payment of $100 million and potential future milestone payments.

As of September 30, 2024, the company maintained a strong liquidity position with $1.19 billion in cash, cash equivalents, and investments, which is expected to fund operations for at least the next twelve months.